Texas 2021 - 87th Regular

Texas House Bill HB938 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	87R581 SMT-F
2	2	By: Raymond H.B. No. 938
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to an election in certain municipalities to convert all or
8	8	a portion of a sales and use tax originally adopted for the purpose
9	9	of sports and community venues to a sales and use tax for economic
10	10	development purposes.
11	11	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	12	SECTION 1. Section 334.089(a), Local Government Code, is
13	13	amended to read as follows:
14	14	(a) Except as provided by Section 334.090, a [A] sales and
15	15	use tax imposed under this subchapter may not be collected after the
16	16	last day of the first calendar quarter occurring after notification
17	17	to the comptroller by the municipality or county that the
18	18	municipality or county has abolished the tax or that all bonds or
19	19	other obligations of the municipality or county that are payable in
20	20	whole or in part from money in the venue project fund, including any
21	21	refunding bonds or other obligations, have been paid in full or the
22	22	full amount of money, exclusive of guaranteed interest, necessary
23	23	to pay in full the bonds and other obligations has been set aside in
24	24	a trust account dedicated to the payment of the bonds and other
25	25	obligations.
26	26	SECTION 2. Subchapter D, Chapter 334, Local Government
27	27	Code, is amended by adding Section 334.090 to read as follows:
28	28	Sec. 334.090. CONVERSION OF TAX. (a) A sales and use tax
29	29	imposed under this subchapter is abolished or the rate of the tax is
30	30	reduced, as applicable, on the date a conversion of all or a portion
31	31	of the tax under Section 504.263 or 505.260 takes effect.
32	32	(b) A municipality shall notify the comptroller of a
33	33	conversion described by Subsection (a) not later than the 60th day
34	34	before the date the conversion takes effect.
35	35	SECTION 3. Subchapter F, Chapter 504, Local Government
36	36	Code, is amended by adding Section 504.263 to read as follows:
37	37	Sec. 504.263. ELECTION TO CONVERT CERTAIN SALES AND USE TAX
38	38	AUTHORITY. (a) This section applies only to a municipality with a
39	39	population of more than 200,000 that borders the United Mexican
40	40	States and that:
41	41	(1) has adopted a sales and use tax under Subchapter D,
42	42	Chapter 334; and
43	43	(2) on September 1, 2021, has or will have outstanding
44	44	bonded indebtedness for bonds issued under Section 334.043 that are
45	45	payable wholly or partly from the sales and use tax.
46	46	(b) A municipality may convert all or a portion of a sales
47	47	and use tax originally adopted under Subchapter D, Chapter 334, to a
48	48	sales and use tax under this subchapter if the conversion is
49	49	approved by a majority of the voters of the municipality voting at
50	50	an election held for that purpose.
51	51	(c) In an election to convert all or a portion of a sales and
52	52	use tax as provided by this section, the ballot shall be printed to
53	53	provide for voting for or against the proposition: "The conversion
54	54	of (insert "the" or "a portion of the," as applicable) sales and use
55	55	tax originally adopted for the purpose of financing a sports and
56	56	community venue project to a (insert the appropriate tax rate that
57	57	is an increment of one-eighth of one percent) sales and use tax for
58	58	the promotion and development of new and expanded business
59	59	enterprises."
60	60	(d) For purposes of Chapter 321, Tax Code, an election under
61	61	this section is an election to adopt a sales and use tax under this
62	62	subchapter and, as applicable, to abolish or reduce the rate of the
63	63	tax under Subchapter D, Chapter 334.
64	64	(e) Notwithstanding Section 321.102, Tax Code, a conversion
65	65	under this section takes effect on the first day after the date all
66	66	bonds described by Subsection (a)(2), including any refunding
67	67	bonds, have been paid in full or the full amount of money, exclusive
68	68	of guaranteed interest, necessary to pay the bonds in full has been
69	69	set aside in a trust account dedicated to the payment of the bonds.
70	70	(f) Notwithstanding Section 321.405(a), Tax Code, a
71	71	municipality that converts all or a portion of a tax under this
72	72	section shall comply with Section 321.405, Tax Code, not later than
73	73	the 60th day before the date the conversion takes effect.
74	74	(g) The conversion of all or a portion of a sales and use tax
75	75	under this section:
76	76	(1) abolishes or reduces the rate of a tax adopted
77	77	under Subchapter D, Chapter 334, as applicable;
78	78	(2) imposes a sales and use tax under this subchapter:
79	79	(A) at the same rate as the tax under Subchapter
80	80	D, Chapter 334, was imposed, if that tax is abolished; or
81	81	(B) at a rate equal to the reduction in the rate
82	82	of the tax under Subchapter D, Chapter 334, if that rate is reduced;
83	83	and
84	84	(3) may not affect the combined rate of all sales and
85	85	use taxes imposed by political subdivisions of this state in any
86	86	territory in which the tax is imposed.
87	87	(h) If a sales and use tax conversion under this section is
88	88	not approved, the election does not affect the municipality's
89	89	authority to impose the sales and use tax adopted under Chapter 334,
90	90	or the rate of that tax, as provided by that chapter.
91	91	(i) If conversion of a portion of a sales and use tax is
92	92	approved under this section, the municipality may continue to
93	93	impose the portion of the tax under Subchapter D, Chapter 334, that
94	94	was not converted as provided by that chapter.
95	95	(j) For a tax converted under this subchapter, the election
96	96	requirement under Subsection (b) is satisfied and another election
97	97	is not required if the voters of the authorizing municipality
98	98	approved the conversion at an election called or held before the
99	99	effective date of the Act enacting this section under an ordinance
100	100	calling the election that:
101	101	(1) was published in a newspaper of general
102	102	circulation in the municipality at least 14 days before the date of
103	103	the election; and
104	104	(2) expressly stated that the election was being
105	105	called or held in anticipation of the enactment of enabling and
106	106	implementing legislation without further elections.
107	107	SECTION 4. Subchapter F, Chapter 505, Local Government
108	108	Code, is amended by adding Section 505.260 to read as follows:
109	109	Sec. 505.260. ELECTION TO CONVERT CERTAIN SALES AND USE TAX
110	110	AUTHORITY. (a) This section applies only to a municipality with a
111	111	population of more than 200,000 that borders the United Mexican
112	112	States and that:
113	113	(1) has adopted a sales and use tax under Subchapter D,
114	114	Chapter 334; and
115	115	(2) on September 1, 2021, has or will have outstanding
116	116	bonded indebtedness for bonds issued under Section 334.043 that are
117	117	payable wholly or partly from the sales and use tax.
118	118	(b) A municipality may convert all or a portion of a sales
119	119	and use tax originally adopted under Subchapter D, Chapter 334, to a
120	120	sales and use tax under this subchapter if the conversion is
121	121	approved by a majority of the voters of the municipality voting at
122	122	an election held for that purpose.
123	123	(c) In an election to convert all or a portion of a sales and
124	124	use tax as provided by this section, the ballot shall be printed to
125	125	provide for voting for or against the proposition: "The conversion
126	126	of (insert "the" or "a portion of the," as applicable) sales and use
127	127	tax originally adopted for the purpose of financing a sports and
128	128	community venue project to a (insert the appropriate tax rate that
129	129	is an increment of one-eighth of one percent) sales and use tax for
130	130	economic development projects described by Chapter 505, Local
131	131	Government Code."
132	132	(d) For purposes of Chapter 321, Tax Code, an election under
133	133	this section is an election to adopt a sales and use tax under this
134	134	subchapter and, as applicable, to abolish or reduce the rate of the
135	135	tax under Subchapter D, Chapter 334.
136	136	(e) Notwithstanding Section 321.102, Tax Code, a conversion
137	137	under this section takes effect on the first day after the date all
138	138	bonds described by Subsection (a)(2), including any refunding
139	139	bonds, have been paid in full or the full amount of money, exclusive
140	140	of guaranteed interest, necessary to pay the bonds in full has been
141	141	set aside in a trust account dedicated to the payment of the bonds.
142	142	(f) Notwithstanding Section 321.405(a), Tax Code, a
143	143	municipality that converts all or a portion of a tax under this
144	144	section shall comply with Section 321.405, Tax Code, not later than
145	145	the 60th day before the date the conversion takes effect.
146	146	(g) The conversion of all or a portion of a sales and use tax
147	147	under this section:
148	148	(1) abolishes or reduces the rate of a tax adopted
149	149	under Subchapter D, Chapter 334, as applicable;
150	150	(2) imposes a sales and use tax under this subchapter:
151	151	(A) at the same rate as the tax under Subchapter
152	152	D, Chapter 334, was imposed, if that tax is abolished; or
153	153	(B) at a rate equal to the reduction in the rate
154	154	of the tax under Subchapter D, Chapter 334, if that rate is reduced;
155	155	and
156	156	(3) may not affect the combined rate of all sales and
157	157	use taxes imposed by political subdivisions of this state in any
158	158	territory in which the tax is imposed.
159	159	(h) If a sales and use tax conversion under this section is
160	160	not approved, the election does not affect the municipality's
161	161	authority to impose the sales and use tax adopted under Chapter 334,
162	162	or the rate of that tax, as provided by that chapter.
163	163	(i) If conversion of a portion of a sales and use tax is
164	164	approved under this section, the municipality may continue to
165	165	impose the portion of the tax under Subchapter D, Chapter 334, that
166	166	was not converted as provided by that chapter.
167	167	(j) For a tax converted under this subchapter, the election
168	168	requirement under Subsection (b) is satisfied and another election
169	169	is not required if the voters of the authorizing municipality
170	170	approved the conversion at an election called or held before the
171	171	effective date of the Act enacting this section under an ordinance
172	172	calling the election that:
173	173	(1) was published in a newspaper of general
174	174	circulation in the municipality at least 14 days before the date of
175	175	the election; and
176	176	(2) expressly stated that the election was being
177	177	called or held in anticipation of the enactment of enabling and
178	178	implementing legislation without further elections.
179	179	SECTION 5. This Act takes effect immediately if it receives
180	180	a vote of two-thirds of all the members elected to each house, as
181	181	provided by Section 39, Article III, Texas Constitution. If this
182	182	Act does not receive the vote necessary for immediate effect, this
183	183	Act takes effect September 1, 2021.